How to Read your CIBIL Report like a Pro?

A lot has been said about a CIBIL score and importance of checking your CIBIL report. However, there are a several people who might not know how to read a CIBIL report or what to take from it. Besides a CIBIL score, a CIBIL report has detailed information about your transactions and payments. It is a summary of your credit history. It comprises of your repayment and borrowing history. There are several tips that help you in better understanding of your CIBIL report.

Let’s take a look at some of the simple tips to read your CIBIL report more effectively:

CIBIL Score:

A CIBIL score is presented in the first section of the CIBIL report. A CIBIL score ranges from 300-900, 900 being the highest. If you have a higher CIBIL score, there is a higher chance of getting a quicker approval on you loan application as well a credit card with several benefits and rewards. A higher score suggests that you have a lesser chance of becoming a defaulter. A CIBIL score is computed by credit bureaus by taking into consideration various factors such as repayment history, age of the credit, type of the credit, credit utilization ratio, credit enquiries and so on. When the report mentions NA or NH it means you have no credit history or you have no credit activity in the last few years. Check here to know more on free CIIBL score

1. Personal Information

This section contains your personal details like name, date of birth, voter ID, passport number, PAN number and so on. Information provided through lenders who have dealt with you directly will be marked with the letter “e” against the relevant details.

• Contact Information

Address information like permanent, office and temporary addresses are present in this section. You personal email ID, mobile number is also available in this section.

2. Employment Information

As the name suggests, this section has details about your type of your employment and income.

3. Account Information:

This section collects information related to all your open loans and credit cards accounts. Details like lender’s name, date of initiation, date of last payment, amount of loan or overdue, account holder type - joint or individual, amount of loan or overdue, total outstanding and a month-based record of payments made for the past 3 years are present in this section. The type of accounts like loan, auto loan and credit card is also mentioned. If you encounter a red band covering any information here, it means that particular information is disputed. You could probably discuss with the lender on the same and get it resolved via a letter of clarification. If you come across any discrepancy in this part that could be related to your account or repayment, make sure to get is resolved at the earliest. Errors in your credit report is one of the main reasons of a low CIBIL score.

4. Enquiries:

All the enquiries initiated by any financial institution against your credit score is listed under this section. Name of the financial institution, date, loan size and type of the loan are are also mentioned. The higher the number of hard enquiries, the larger negative impact on your CIBIL score. It must be noted that this section only mentions the hard enquiries and not the soft enquiries.

• Few important terms you need to know

Your credit report consists of several terms in addition to the aforementioned information. Here’s a list of terms that will help you understand your credit report in a better way:

• DPD: Days past due is an indicator of by how many days the payment is late in that month. More than standard (STD) or zero ‘000’ is viewed negatively.

• CN: This is the control number mentioned at the top of the report and is useful if one wants to raise a dispute.

• Settlement Amount: If a loan or a credit card payment is disputed. The borrower and the lender may agree at an amount that will be paid by the borrower; the rest is written off by the lender.

• Written off Amount: When a loan amount is written off that means the lender has no hopes of recovering this amount from the borrower. Principal or total (principal plus interest) may be written off by the lender.

We hope all the aforementioned points will help you read and understand your credit report in a much easier way.